The S&P 500 Index is currently at 1,500. You manage a $12 million indexed equity portfolio. The S&P 500 futures contract has a multiplier of $250.

a. If you are temporarily bearish on the stock market, how many contracts should you sell to fully eliminate your exposure over the next six months?

Number of contracts ___

b. If T-bills pay 1.0% per six months and the semiannual dividend yield is 1.8%, what is the parity value of the futures price? (Round your answer to 2 decimal places. Do not round intermediate calculations.)

Parity value ____